- Donald Trump recently issued a statement on the social media platform Truth Social, denying rumours that he intends to sell shares in Trump Media & Technology Group.
- As soon as the news broke, the share price of Trump Media & Technology Group rose immediately by 4%.
What happened
The United States President-elect, Donald Trump, recently issued a statement on Truth Social, refuting rumours that he plans to sell his shares in Trump Media & Technology Group, the parent company of Truth Social. Trump suggested that these rumours might have been spread by market manipulators or short sellers, emphasising that he has “no intention of selling” any shares. In his post, Trump stated that the “false, untrue, and possibly illegal rumours and/or statements” regarding his sale of shares are unfounded, and he called for an investigation into those responsible for spreading them. The news release triggered a 4% surge in the share price of Trump Media & Technology Group. The company’s stock rose nearly 10% on Friday, increasing by about 4% within an hour of Trump’s post. As of 11 a.m. Eastern Standard Time, the price per share was $30.13.
The third-quarter financial report released earlier this week showed that Trump Media had a net loss of $19 million. Trump’s election victory prevented the share price from being affected.
This statement marks Trump’s first written post on Truth Social since he encouraged people to vote at 10 p.m. on Tuesday (Eastern Standard Time). On Friday morning, he began sharing electoral college maps and major newspaper front pages. However, the post denying any intention to sell shares was his first written statement since winning the election.
Also read: Trump Media shares drop 10% as insider selling ban expires, market cap falls to $2.4B
Also read: Trump media shares surge amidst legal storm
Why it is important
Trump’s statement directly addressed market rumours about his potential sale of shares. This clear stance helps stabilise investor confidence and alleviates market concerns about future uncertainty surrounding Trump Media & Technology Group (TMTG). Furthermore, Trump’s statement led to an immediate 4% increase in TMTG’s share price, reflecting the market’s positive reaction to the news that Trump intends to retain his shares. This demonstrates that Trump’s comments have a direct and significant impact on the company’s share price.
Trump’s electoral prospects also heavily influence market sentiment. Following his announcement of victory, the market responded enthusiastically, with related stocks and asset prices rising accordingly. In his statement, Trump suggested that rumours about him selling shares might be the work of market manipulators or short sellers, raising concerns about market fairness and transparency.
